Originally posted: Fri Aug 15, 2003
The 7 Steps to Finding Your Financial Fast Track.. Baby steps first... I'll complete these 7 Steps as best as I can.
Page 201
1) YOUR FIRST STEP:
Fill out your own personal financial statement. .....
In order to get where you want to go you need to know where you are.
This is the first step to take control of your life and spend more time minding your own business.
As per the sample CASHFLOW 101 (game) Income Statement and Balance Sheet on page 202.
PLAYER: Trinity
"Goal: To get out of the Rat Race and onto the Fast Track by building up your Passive Income to be greater than your Total Expenses"
AUDITOR: ??? -- Whoever wants to be my Auditor
Updated Nov. 28 2003
All the figures I have included are approximations and not the real amounts. I gave you approximations just so you can get an idea of what my Income Statement and Balance Sheet will look like right now.
As you can see, my only real Liability is my Gunns Investment. I have been smart in the past and resisted getting a credit card... I made sure I bought my moped out-right... I don't have any retail debt plus I pay rent so I don't have a mortgage (I'm helping to pay someone else's mortgage instead.. I know). Since I have a one-person (not a two-person) moped motorcycle, the rego is incredibly cheap so is the petrol and servicing costs. $2 per week petrol and maintanence is $100 every 3 months (or thereabouts). I just hope I filled out the Income Statement and Balance Sheet in the correct manner - if I didn't.. please tell me! BTW.. my "pay cheque" of approx. $900 per month... that is easily sucked dry thru the expenses associated with living and being an exotic dancer (make-up, costumes, etc).
2) SET FINANCIAL GOALS
Set a long term financial goal for where you want to be in 5 years and a smaller, short-term financial goal for where you want to be in 12 months. (The smaller financial goal is a stepping stone along the way to your 5-year goal.) Set goals that are realistic and attainable.
A) Within the next twelve months:
1. I want to decrease my debt by $10,900.00 **
2. I want to increase my cash flow from my assets, or passive income, (passive income is income you earn without working for it) to $3,000 per month.
** I will have decreased my Gunns Investment debt in 12 months time as I opt-ed for the 12 months interest free option... In other words, for the next 11 months (I've already paid off one month) I'm paying it off with no interest. It is $993 per month to pay off.. easy since I can easily earn that within a month. I've already got 4 month's worth saved up to use to pay it off. My main focus, at the moment, is to put money aside (savings) so I can easily pay this off and then start to build up my asset column (buying businesses and then investment real estate).
B) My 5-year financial goals are:
1) Increase my cash flow from my assets to $4,000 per month ($1,000 per week).
2) Have these investment vehicles in my asset column: Businesses and Real Estate (main focus) and stocks (minor focus).
C) Use your 5-year goals to develop your income statement and balance sheet 5 years from today.
I'll do this (part c) when I have more time to really think about what I would like it to look like..
Feel free to share with me if you have done this section of Cashflow Quadrant and your own journey. :-D
"Dream big, think long term, underachieve on a daily basis and take baby steps..." from Cashflow Quadrant. Read the book to find out what is meant by "underachieve on a daily basis"... you'll agree with the philosophy. ;-D
